Q1 Result: Marico's Profit rises 8.7% The company's consolidated net profit rose 8.7 per cent to INR 464 crore ($55.4 million) in the April-June quarter
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FMCG major Marico, which owns brands such as Saffola and Parachute reported an increase in first-quarter profit on Monday, on the back of steady demand. The company's consolidated net profit rose 8.7 per cent to INR 464 crore ($55.4 million) in the April-June quarter.
While the Parachute hair oil business was helped by higher prices, its Saffola cooking oil business benefitted from price cuts. Revenue growth will trend upwards on higher sales volumes, including in the international business, with earnings also increasing this financial year, Marico said in a filing. Total revenue from operations increased 6.7 per cent to INR 2,643 crore, marking its biggest growth in more than two years. Revenue from India, which made up three-fourths of total revenue, climbed 7.4 per cent.
Saugata Gupta, MD & CEO, said, "The new fiscal has started on a promising note for both the domestic and international businesses with revenue growth visibly turning a corner. We expect to sustain the improving trajectory in the core domestic business on the back of consistent market share and penetration gains coupled with the ongoing initiatives to revive growth in traditional trade and expand direct reach under Project SETU. We will also maintain steadfast focus on the profitable scale up of the Foods and Digital-first brands. The international business has been veritably consistent over the last few years and is expected to maintain its double-digit constant currency growth momentum. We will aim to deliver on each of the key performance parameters and drive healthy revenue-led earnings growth in the near and medium term."
The company will continue to aggressively diversify the portfolio through the scale up of Foods and Premium Personal Care portfolios, while improving profitability parameters in line with its medium-term strategic priorities. After successful initiatives towards refinements in supply chain and GTM during FY24, "We aim to grow Foods at 20-25 per cent + CAGR to two times of FY24 revenues in FY27. The Digital-first portfolio is expected to exit FY25 at an ARR of INR 550-600 crore and scale to two times of FY24 ARR in FY27. Consequently, we expect the domestic revenue share of the Foods and Premium Personal Care portfolios to expand to ~25 per cent by FY27,' he said.
